Stored value accounts (i.e., or debit accounts) enable users to conduct transactions using a card similar to a credit account. Debit cards, therefore, enable users to conduct transactions without the need for carrying cash or checks. Debit cards typically use a personal identification number (i.e., a PIN) and, consequently, are safer than cash to carry. Debit cards also enable users to conduct transactions in which cash cannot be used, such as purchasing products and services over the phone or Internet. However, unlike a credit card account, a stored value account only enables a user to complete a transaction if the user has already deposited a sufficient amount of value into the debit account.
In prior systems, to initialize a stored value account and obtain a debit card, a user physically visited a bank branch. The user would meet with an available bank representative. Then, the user would present personal information that enabled the bank representative to verify the identification of the user. The bank optionally conducted further research on the user, for example, checking the user's credit report. The personally identifying information (i.e., information identifying a specific user) would be associated with the stored value account in the records of the bank. In most cases, the personally identifiable information would be indicated on the card or stored in a readable format on the card. Such prior systems can be inconvenient and personally intrusive.
In other prior systems, while users were able to obtain debit cards at locations other than banks, they were still required to complete an application and to provide personal information to obtain the card. Accordingly, the same drawbacks existed in these other prior systems.
Such practices are one reason that a significant portion of the population is underserved or distrusting of the banking system. This “under-banked” portion of the population is generally excluded from traditional banking products such as checking accounts, credit cards, and debit cards. For example, the under-banked population includes individuals having poor credit history, individuals requiring immediate credit, and individuals having no established credit history. Further examples of the under-banked populace include individuals of limited means and/or who distrust banking institutions. Yet another example of the under-banked populace includes individuals wanting to maintain a consistent credit report in preparation for a major purchase. Another subset of under-banked individuals includes “unbanked” individuals. An unbanked person is a person who does not have a banking relationship with a traditional financial institution, such as a commercial bank or savings loan.
In some prior systems, some banking transactions, such as debit card issuance, can be performed using a kiosk remote from a bank. However, in such systems, the kiosk receives personal data from a user and verifies the identity of the user. In other such systems, the kiosk associates personally identifying information with the debit card.
In view of the foregoing, there is a need in the art for convenient, non-intrusive systems and methods of issuing debit cards. Such a system and method would preferably provide for the issuance of debit cards without requiring that the recipient provide any personally identifying information. The present invention overcomes the shortcomings of the prior art and addresses these needs in the art.